Fuva Brain Ltd. (3927) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

YRGLM, Inc.

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CommSeed Corp.

Succeed Co., Ltd. (Tokyo)

Vario Secure, Inc.

Encourage Technologies Co., Ltd.

Fuva Brain Ltd.

Jorudan Co., Ltd.

Ecomott, Inc.

HOUSEI, Inc.

enish, Inc.

Why is Fuva Brain Ltd. ?

Poor Management Efficiency with a low ROE of 2.96%

The company has been able to generate a Return on Equity (avg) of 2.96% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 33.08% and Operating profit at 38.93%

Flat results in Dec 25

PRE-TAX PROFIT(Q) At JPY 75.97 MM has Fallen at -54.14%
NET PROFIT(Q) At JPY 45.09 MM has Fallen at -55.55%
RAW MATERIAL COST(Y) Grown by 9.31% (YoY)

With ROE of 9.72%, it has a attractive valuation with a 3.11 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 65.27%, its profits have risen by 304.3% ; the PEG ratio of the company is 0.1

Market Beating performance in long term as well as near term

Along with generating 65.27% returns in the last 1 year, the stock has outperformed Japan Nikkei 225 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fuva Brain Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fuva Brain Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Fuva Brain Ltd.

65.27%

0.18

60.77%

Japan Nikkei 225

36.73%

1.30

28.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

33.08%

EBIT Growth (5y)

38.93%

EBIT to Interest (avg)

-2.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.85

Sales to Capital Employed (avg)

2.00

Tax Ratio

7.46%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

39.56%

ROE (avg)

2.96%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.11

EV to EBIT

18.56

EV to EBITDA

13.99

EV to Capital Employed

14.80

EV to Sales

0.80

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

79.76%

ROE (Latest)

9.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

17What is working for the Company

NET PROFIT(HY)

At JPY 86.61 MM has Grown at 225.85%

ROCE(HY)

Highest at 23.01%

NET SALES(Q)

Highest at JPY 1,433.56 MM

CASH AND EQV(HY)

Highest at JPY 3,809.41 MM

-18What is not working for the Company

PRE-TAX PROFIT(Q)

At JPY 75.97 MM has Fallen at -54.14%

NET PROFIT(Q)

At JPY 45.09 MM has Fallen at -55.55%

RAW MATERIAL COST(Y)

Grown by 9.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 46.89 times

INTEREST(Q)

Highest at JPY 2.33 MM

Here's what is working for Fuva Brain Ltd.

Net Sales

Highest at JPY 1,433.56 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (JPY MM)

Cash and Eqv

Highest at JPY 3,809.41 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Fuva Brain Ltd.

Pre-Tax Profit

At JPY 75.97 MM has Fallen at -54.14%

over average net sales of the previous four periods of JPY 165.67 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (JPY MM)

Interest

At JPY 2.33 MM has Grown at 17.34%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Net Profit

At JPY 45.09 MM has Fallen at -55.55%

over average net sales of the previous four periods of JPY 101.44 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (JPY MM)

Interest

Highest at JPY 2.33 MM

in the last five periods and Increased by 17.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (JPY MM)

Inventory Turnover Ratio

Lowest at 46.89 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.31% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales